Executive Summary
carsales.com Ltd operates online automotive, motorcycle, and marine classifieds business in Australia, Brazil, South Korea, Malaysia, Indonesia, Thailand, Chile, China, Argentina, and Mexico. More Details
Rewards
PE ratio (56.1x) is below the Interactive Media and Services industry average (59.8x)
Risk Analysis
Snowflake Analysis
Flawless balance sheet with proven track record.
Share Price & News
How has carsales.com's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CAR is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: CAR's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
2.8%
CAR
-1.3%
AU Interactive Media and Services
0.8%
AU Market
1 Year Return
29.4%
CAR
43.2%
AU Interactive Media and Services
28.0%
AU Market
Return vs Industry: CAR underperformed the Australian Interactive Media and Services industry which returned 43.2% over the past year.
Return vs Market: CAR exceeded the Australian Market which returned 28% over the past year.
Shareholder returns
| CAR | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.8% | -1.3% | 0.8% |
| 30 Day | 4.1% | 1.4% | -0.3% |
| 90 Day | 33.3% | -1.3% | 1.5% |
| 1 Year | 36.2%29.4% | 45.7%43.2% | 33.5%28.0% |
| 3 Year | 97.3%75.6% | 79.0%70.3% | 37.1%20.3% |
| 5 Year | 154.2%115.9% | 155.0%131.7% | 67.0%34.0% |
Long-Term Price Volatility Vs. Market
How volatile is carsales.com's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
We Wouldn't Be Too Quick To Buy carsales.com Ltd (ASX:CAR) Before It Goes Ex-Dividend1 week ago | Simply Wall St
What Does carsales.com Ltd's (ASX:CAR) Share Price Indicate?3 weeks ago | Simply Wall St
We Think That There Are Some Issues For carsales.com (ASX:CAR) Beyond Its Promising EarningsValuation
Is carsales.com undervalued compared to its fair value and its price relative to the market?
56.05x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CAR (A$25.95) is trading above our estimate of fair value (A$18.43)
Significantly Below Fair Value: CAR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CAR is good value based on its PE Ratio (56.1x) compared to the Australian Interactive Media and Services industry average (59.8x).
PE vs Market: CAR is poor value based on its PE Ratio (56.1x) compared to the Australian market (18.7x).
Price to Earnings Growth Ratio
PEG Ratio: CAR is poor value based on its PEG Ratio (4x)
Price to Book Ratio
PB vs Industry: CAR is overvalued based on its PB Ratio (7.8x) compared to the AU Interactive Media and Services industry average (7.7x).
Future Growth
How is carsales.com forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
14.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CAR's forecast earnings growth (14.1% per year) is above the savings rate (1.9%).
Earnings vs Market: CAR's earnings (14.1% per year) are forecast to grow faster than the Australian market (11.3% per year).
High Growth Earnings: CAR's earnings are forecast to grow, but not significantly.
Revenue vs Market: CAR's revenue (8.3% per year) is forecast to grow faster than the Australian market (5.2% per year).
High Growth Revenue: CAR's revenue (8.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CAR's Return on Equity is forecast to be high in 3 years time (22.5%)
Past Performance
How has carsales.com performed over the past 5 years?
1.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CAR has high quality earnings.
Growing Profit Margin: CAR's current net profit margins (30.6%) are higher than last year (30.3%).
Past Earnings Growth Analysis
Earnings Trend: CAR's earnings have grown by 1.8% per year over the past 5 years.
Accelerating Growth: CAR's earnings growth over the past year (9.3%) exceeds its 5-year average (1.8% per year).
Earnings vs Industry: CAR earnings growth over the past year (9.3%) underperformed the Interactive Media and Services industry 10.3%.
Return on Equity
High ROE: CAR's Return on Equity (14%) is considered low.
Financial Health
How is carsales.com's financial position?
Financial Position Analysis
Short Term Liabilities: CAR's short term assets (A$364.4M) exceed its short term liabilities (A$86.2M).
Long Term Liabilities: CAR's short term assets (A$364.4M) exceed its long term liabilities (A$136.9M).
Debt to Equity History and Analysis
Debt Level: CAR's debt to equity ratio (4.6%) is considered satisfactory.
Reducing Debt: CAR's debt to equity ratio has reduced from 87.1% to 4.6% over the past 5 years.
Debt Coverage: CAR's debt is well covered by operating cash flow (458.7%).
Interest Coverage: CAR's interest payments on its debt are well covered by EBIT (21.4x coverage).
Balance Sheet
Dividend
What is carsales.com current dividend yield, its reliability and sustainability?
1.83%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CAR's dividend (1.83%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.31%).
High Dividend: CAR's dividend (1.83%) is low compared to the top 25% of dividend payers in the Australian market (5.26%).
Stability and Growth of Payments
Stable Dividend: CAR's dividends per share have been stable in the past 10 years.
Growing Dividend: CAR's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (90.3%), CAR's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CAR's dividends in 3 years are forecast to be covered by earnings (81% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.5yrs
Average management tenure
CEO
Cameron McIntyre (50 yo)
4.67yrs
Tenure
AU$4,083,626
Compensation
Mr. Cameron McIntyre has been the Chief Executive Officer and Managing Director of carsales.com Ltd since March 17, 2017. Mr. McIntyre served as the Chief Operating Officer of carsales.com Ltd from October...
CEO Compensation Analysis
Compensation vs Market: Cameron's total compensation ($USD2.97M) is above average for companies of similar size in the Australian market ($USD2.22M).
Compensation vs Earnings: Cameron's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: CAR's management team is considered experienced (4.5 years average tenure).
Board Members
Experienced Board: CAR's board of directors are considered experienced (5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CAR insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.7%.
Top Shareholders
Company Information
carsales.com Ltd's company bio, employee growth, exchange listings and data sources
Key Information
- Name: carsales.com Ltd
- Ticker: CAR
- Exchange: ASX
- Founded: 1996
- Industry: Interactive Media and Services
- Sector: Media
- Market Cap: AU$7.326b
- Shares outstanding: 282.33m
- Website: https://www.carsales.com.au
Number of Employees
Location
- carsales.com Ltd
- 449 Punt Road
- Level 4
- Melbourne
- Victoria
- 3121
- Australia
Listings
Biography
carsales.com Ltd operates online automotive, motorcycle, and marine classifieds business in Australia, Brazil, South Korea, Malaysia, Indonesia, Thailand, Chile, China, Argentina, and Mexico. The company o...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/17 15:39 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.